Filing your income tax electronically is a good way to get your taxes done and in on time.
One problem people seem to have with their taxes is sitting down and doing them and then also making sure that they mail them out on time. One way to avoid the stressed of mailing things back and forth and waiting to see if the IRs got your paperwork or not is to file electronically.
Filling electronically is where instead of mailing everything in to the IRS and then later paying by check via mail you can simply fill everything in on your computer and send it over the internet. You can also send your payment along with your return to get everything done with at the same time.
Generally to file online you will go to a company's website such as HR Block and you will fill in all your tax forms online. This is sometimes good because they will alert you to any rebates that you may qualify for. Sometimes people miss these rebates but since the computer tells you what you are eligible for you may actually save some money.
One thing that you have to realize about filling your taxes electronically is that sometimes companies will make you pay to use this service. Most companies that offer online filing will offer a free filling. However, they will try to up-sell you by saying if you pay only $20 they will have a professional look over your return to make sure you didn't miss any deductions or forget to fill anything in. Also if you find out you need to file a form other than a 1040 they will generally charge you for that too.
The good thing about filing online is that it's really much faster and simpler. YOu log on, fill in the blanks, and everything is calculated for you right before your eyes. Make sure to print out a copy and double check everything before you send it in though. Computers can make mistakes. Also humans seem to make more mistakes writing on a computer than they do on paper so check for that too.
Overall electronic filing is quite helpful although some people who are not very computer literate might have an easier time just doing it by hand.